| At one time retail may have been the Rodney Dangerfield of development: it didn’t get no respect. Sure, enclosed malls raised the bar considerably, and those old enough to remember streetcars and buses could recall the heyday of bygone downtowns. But for the most part, “serious” economic development focused more on business parks and industry, not retail.
Things have changed. Behind the scenes, trends such as the increasing reliance on sales tax revenues by state and local governments means this industry does have heft. The reality of a consumer society also means retail is not only big business, it is part of a community’s fabric—or at least it better be if that community intends to thrive. By most signs, Greater Kansas City is thriving. Despite slowdowns in housing and other issues—troubles largely tied to national trends rather than local tendencies—Greater Kansas City is experiencing an upbeat economy overall, with many local factors balancing negative national inclinations. If residential growth has slowed, the region’s rising employment and continued project development provide a counter balance. As a result, Greater Kansas City is likely to continue its steady growth. To a significant degree, one of the most consistently positive areas is comprised of retail growth. Although current plans for several large developments in southern Johnson County have raised concern over market saturation there, it appears that few are reaching for the brake lever in that county, or anywhere else. And while several highly visible projects have garnered most of the headlines, the bullish outlook is visible in small and medium developments throughout Greater Kansas City as well. For every Zona Rosa and Village West, there are several smaller but notable developments in Platte City or Warrensburg. As developers push forward with these and newer plans, there are several trends worth noting. “Lifestyle” centers that in some sense seek to recreate new urban anchors for our 21st century cities are becoming widespread, with some aspects of their design even showing up on a small neighborhood scale. Several major developments are closely tied to a recreational component. More traditional, large box centers are the most numerous, sometimes sprouting so fast it appears that a new form of germination has been invented. Looking Out Although today’s downtown markets are dramatic and in some cases huge, the greatest number of retail projects remain in more traditional suburban locations—although the word “traditional” must be used with caution. At one time, such growth would have meant enclosed mall shopping centers, but that trend has clearly run its course in this area, as it has nationally. Of the nearly two dozen sizable centers in Greater Kansas City, you can count the viable ones today on one hand and have fingers to spare. The leaders today appear to be lifestyle centers and, for sheer volume, the big box mega centers. The label lifestyle is applied to many centers that are really strip retail areas with a bit of landscaping. Indeed, the definition of a lifestyle center can be nothing more than a center with some benches and a few other amenities thrown in—basically a really nice outdoor mall. Those centers that really aspire to the label, however, will give a major nod to mixed use. Ultimately, they aspire to the creation of a “new town.” The $350-plus-million Park Place Community in Leawood is a good example. Located near 117th and Nall, the development is designed to have some 125,000 square feet of retail space with the appearance of a traditional “Main Street America.” Condominiums, luxury homes, and a luxury hotel will accompany the retail area. Some 85,000 square feet of “boutique professional” office space will be available above retail storefronts. Another—not surprisingly also in Johnson county—is the $400 million mixed-use Prairiefire at Lionsgate in southern Overland Park. Sited on 60 acres of land just south of 135th Street between Lamar and Nall avenues, Prairiefire will include about 345,000 square feet of luxury retail, 295,000 square feet of office space, a 100,000-square-foot hotel and about 700,000 square feet of residential space divided among 330 condo and townhouse units. This project also will include four parks, a central plaza with room for a performance stage, a wetlands area and several hiking trails—a virtual poster child for lifestyle centers. It will also have unique prairie-style architecture with retail on the first floor, office space on the second floor and two floors of residential space above that. Another large, southern Johnson County effort is Corbin Park southeast of 135th Street and Metcalf. The approximately $225 million development plans to bring several retailers new to the area. The 96-acre site was previously under development by Copaken White & Blitt as Walk at High Pointe. As with several other efforts, Corbin Park is targeting a multi-use footprint comprised of offices, banks, a hotel, amenities such as outdoor fireplaces and water features all aligned along both sides of a central thoroughfare to give it the feel of a small-town Main Street. Its scheduled opening is for 2008. For an even larger example—although it walks to the beat of a somewhat different drummer—Legends at Village West is a good example. With Cabella’s and an additional 750,000 square feet of shopping and entertainment, this Wyandotte County project resembles more downtown Kansas City by focusing on entertainment. Like Downtown Kansas City, the Wyandotte development saw some controversy on incentives, but its first phase is a success as a regional, even multi-state destination, with more than 35 stores. Village West is also a striking case of the economic power of retail-oriented developments. The entire project in fact was designed to help economically jump-start Wyandotte County, and its success has been a lesson other communities have paid close attention to. The project generates an estimated $248 million annually in sales and creates approximately 2,500 new permanent jobs. Such success is not automatic. In Mission, another project was slated to bring a $300 million development at the old Mission Center. Some redesign is still in the works for what was originally planned as a 1.3 million-square-foot mixed-use development labeled The Gateway. Critical for any center, one issue involves finding the right mix for traffic in the area. Not all developments in Johnson County or the greater metropolitan area are mega-sized. Olathe Pointe, a shopping village with a mix of entertainment and dining, opened in 2007 on West 135th Street at Blackbob Road. At 390,000 square feet, this upscale development is part of some one million square feet of retail under development in the area. Other projects this large include One Nineteen, Olathe Gateway, Mission Corner and Ridgeview Falls. Other regions have retail developments that can rival those in Johnson County. The area surrounding the I-29 and Highway 152 interchange in Platte County is a good example, although it involves half a dozen separate centers rather than a single, planned center. Indeed, the number of developments is indicative of what a dynamic retail focus this has become. Not only does this area include Zona Rosa, but a total of more than three million square feet that consists of Boardwalk Square and the Shoppes at Boardwalk. Several of these stories deserve additional consideration. This Platte County saga began in the 1980s with Boardwalk Square, east of I-29. Then the area expanded dramatically with a series of adjoining centers, largest projects such as Barry Woods Crossing or Shops at Boardwalk. The most dramatic jump may have come with the first-phase opening of Zona Rosa, a 93-acre upscale center that many consider a roll model for lifestyle centers. With its old-town environment and mixed-use of retail, residential and some commercial, it quickly became one of the most popular retail destinations in the region. A second phase is opening with additional residential and retail. Other projects are making the I-29/Highway 152 area a standout. Newer development includes the Tiffany Springs Market Center and the Shoppes at Riverstone, part of a master-planned community. Though not equal in size to the Platte County retail nexus, several developments are underway in Clay County. The Highway 152 corridor near Liberty includes two shopping centers estimated at $80 million that are nearly complete at Flintlock and 152. Primarily following the big box model, the Shoppes at Shoal Creek and Shoal Creek Plaza are a response to dramatic residential growth in that area. Also nearby, the Shoppes at Liberty Triangle is now entering its second phase. Several other retail developments are underway north and south along the I-35 corridor in this Liberty/Kansas City area, including the new Rogers Plaza. Different Drummers One of the most recent retail developments in the Northland is arguably the most surprising. Briarcliff Development has essentially taken an unattractive, even dangerous rock quarry and turned it into some of the more valuable property in the Kansas City area, including its new retail center, Briarcliff Village. The entire story began in the 1990s, but the retail component is more recent. Opened in 2006, the Tuscan-themed retail village has quickly drawn a regional clientele. Briarcliff deliberately targeted a different niche, along with its obvious focus on upscale. The $30 million retail area invited only top local retailers—not chains. As a result, local customers find “the best in the city” and out-of-town visitors experience something unique. Areas lying further out are sometimes overlooked. Although it hit some bumps, a multi-use Hawthorne Center in Warrensburg involves a 200-acre site north of the Wal-Mart there. The project has gone slowly, but groundbreaking for the project was recently scheduled. The commercial area is expected to include more than 500,000 feet of space along Highway 13. Another outlying development is anything but slow. Perhaps because of its more independent location, St. Joseph has seen several major retail developments in recent years, especially on I-29. The most dramatic are the new Shoppes at North Village and nearby Tuscany Towers, which brought nearly 900,000 square foot in new retail to this community. These developments are on St. Joseph’s northern side, making them only an hour from locations in northwest Missouri and northeast Kansas that have nothing on this scale and quality. This kind of case-by-case diversity is frequently the retail business, making a successful model in one area questionable in another. All share the challenge of finding the right market, the right tenant mix and the right amenities to create a sustainable product. In many ways, the saga of a Liberty development is a good example of how retail is evolving. Whitehall Station was originally planned as an ambitious, 70-acre lifestyle center in the southwest part of that city, near a strategic intersection of I-35 and the new South Liberty Parkway. Traffic studies and other positive forecasts saw frequent comparisons of this future center and the older Zona Rosa. The plans have not been scuttled, but factors from housing slowdowns to delay of road improvements were among factors that led to some changes in the original plans, which admittedly are still evolving. Plans still call for most of the 70 acres to be developed as retail, but a heavier influx of residential is now being considered. The center—at least at present—will contain approximately 700,000 square foot of developments. Similar realism has played some role in Topeka, where aggressive plans were underway to redevelop the 515-acre, former Menninger Clinic campus north of I-70. The Shoppes at River Hill are underway and tenants are signed on, but some plans have been scaled back in what might be a nod to market realities. The first restaurants at The Shoppes, Red Robin and Johnny Carino’s, are open and some 300,000 square feet of development is ultimately expected. Topeka’s most significant success may be further south. The more traditional Wanamaker corridor includes several retail centers and remains the city’s leading retail area. In this area south of I-70, numerous restaurant and retail establishments are joining the existing area that includes several blocks of retail, as well as hotels and motels. While it’s likely to be successful, one development ran into a buzz saw of public opinion when it began construction in late 2007. North Oak Village near North Oak Trafficway and Vivion Road sits on 30 acres formerly owned by the Midwest Baptist Theological Seminary. The acreage included a large stand of mature trees that brought protests when they were removed to make way for the development. The center’s ultimate success is not guaranteed, but its location illustrates several significant trends in area retail growth. North Oak Village overlooks a strategic interchange on I-29, one of the busiest freeways in Greater Kansas City. The development also represents an important local trend. Although North Oak Village is being built on undeveloped land, it is located on the long-established, North Oak corridor. That section includes some of the Northland’s oldest retail development and has been the focus of plans for extensive redevelopment. If successful, North Oak Village would be a key step in that process. Suburban Successes Several other significant developments are occurring in suburban areas, and few are as busy as eastern Jackson County. In Blue Springs, major growth is planned along the Adams Dairy Parkway. Originally built as a reliever roadway to I-70, Adams Dairy Parkway has created a significant new economic development option in one of the fast growing cities in eastern Jackson County. The current trend involves a proposal by well-known RED Development for a 65-acre mixed-used development. The proposal, Adams Diary Landing, would have 600,000 square feet with an investment in Blue Springs of $142 million. It will bring major retail anchors and approximately 70,000 square feet of additional lifestyle retail. The project design theme will be Italian/Mediterranean style architecture with large areas for public gatherings. The overall retail development includes a pedestrian friendly walkable design, another example of the lifestyle trend. Nearby, Lee’s Summit boasts several projects following some false starts and, in one case, the quiet continuation of exploration for a Legoland entertainment retail project. More immediately, Summit Fair includes 550,000 square feet of retail with a leading department store anchor. The largest development in Jackson County is in Independence. The Bass Pro Shop is scheduled to open in early 2008, southwest of I-70 and M-291. The $174 million retail project will include a hotel, an 18-acre lake and extensive landscaping and new retail area, the Falls. The Falls is a story in itself, with 465,000 square feet of retail and a 100-foot waterfall, the center lives up to its name. Tenants are expected to include a 40,000-square-foot furniture store and several restaurants. Even more retail development is planned south of Bass Pro and The Falls, making this combination retail/entertainment area potentially on a scale to match any in Greater Kansas City. New Life for Old Malls Among the most interesting retail developments are the one-time mainstays of retail trade, enclosed malls. Ironically, while downtowns and urban cores are reviving, malls continue to face challenge. Several positive examples are available here, however. Two of the largest are Metcalf South Shopping Center and Metro North. Last year, the owners of the two malls contracted with a Denver-area company to jointly redevelop the properties. As a result, Metro North Shopping Center and Metcalf South Shopping Center will be dramatically redeveloped. The company, Alberta Development Partners, LLC, has released preliminary plans. Both call for complete change following today’s “lifestyle center” trends. Metcalf South, at 95th Street and Metcalf Avenue in Overland Park, will become The Streets at Metcalf. Preliminary plans call for a 1.1 million-square-foot, mixed-use project including upscale boutiques, national and local retail shops, an entertainment complex, office and residential space, and a hotel. Metro North will become The Streets at Barrytowne with 2.1 million square feet of retail, residential, restaurant and entertainment space, including a theater as well as a commons area for community events and park-like areas. Other centers follow diverse paths. The former Blue Ridge Mall was among the first in Greater Kansas City to face complete reconstruction. In a more than $50-million project, the mall originally built in 1970 was completely razed to make room for a new development, including a Wal-Mart Supercenter. The new location is named Blue Ridge Crossing. An older St. Joseph mall, East Hills, is also targeted for major renovation, making it one of the area’s oldest retail areas being refurbished rather than demolished. Two centers are still awaiting a conclusion. The former Bannister Mall has been the subject of several proposals. The most recent may also be the most imaginative and ties redevelopment of the center to a long-awaited major league soccer stadium. The proposal is still under development and faces several hurdles. In Clay County, Antioch Mall continues to operate with much reduced tenancy. The property’s owners are seeking tax incentives to help with razing the property, a relatively expensive process because of extensive underground construction typical of older malls. Tentative plans for the rebuild include more examples of lifestyle design: extensive landscaping and a fountain. Downtown Retail trends are not solely a suburban movement by any means. While many of these developments involve green fields, some of the most significant target rebuilding in older areas. Downtown Kansas City is the most dramatic, but almost every sizable city and town in the region is repositioning its core, often as a renaissance of the original multi-use center that made these areas popular in the first place. The trend is especially dramatic because so many of these areas have languished for years, even decades. There’s also a surprising amount of variety, although several common threads exist. Kansas City’s $4-billion-plus urban core development is the clear leader in this category. The sheer size and scope of the effort is nationally noteworthy, but some aspects of this renaissance may have been forgotten. The effort actually began with residential development when the area’s overabundance of warehouse and office space—much of it empty—was steadily converted into loft space. The romantic view was that the trend began with grassroots, local effort, but in many cases, those involved also included outside developers who had seen such success in other cities. Regardless of who funded new lofts and condo construction, the addition of nearly 20,000 new residents in the area is a factor in the recent retail development. The tangible vote of confidence by those new residents in downtown growth wasn’t the only reason for more recent success, but it was a factor. This may be especially visible in the largely grassroots-driven revival of the Crossroads District. Team crowds on First Fridays and other events have served as an object lesson in the possibilities of downtown lifestyle—something that was hard to sell here for nearly 40 years. A second component involved major support by the city of Kansas City, which for years had been less than aggressive in redeveloping downtown—the hole in the metropolitan donut. Although controversy has surrounded some of the city’s actions, the overall success is clear and appears to be near self-sustaining. In a very real way, humble retail development was clearly a major instigator of a widespread movement. Repeat Business With location variations, there are several parallels in the area’s other large cities, including St. Joseph, Topeka and Lawrence. St. Joseph’s experience in many ways is most like that of Kansas City, where much has been made of what appeared to be almost nothing. After years of decline that may have rivaled any in the area, downtown St. Joseph has seen an estimated $60 million in private development in the past five years alone. Like Kansas City’s, St. Joseph’s downtown rebirth began largely as a residential effort, but the loft conversions have helped create demand for specialty retail and other commercial development—with retail providing the key draw here as elsewhere. Also like Kansas City’s downtown, or even the Legends, entertainment is a close ally. Unlike most other forms of development, retail fits with residential and to create those elements that come to mind for the better aspects of urban living. St. Joseph multi-use downtown appears to be close to achieving self-sustaining momentum—if not already. Two major developments have joined the downtown effort, including conversion of a former hospital property into upscale condominiums. As with other successful efforts, St. Joseph has used several forms of community support. City help included incentives that were coupled with state and federal programs. A $2 million streetscape is also underway to better connect the scores of new lofts, shops and restaurants. Less tangible, a “Dream Initiative” is gathering consensus on how this historic urban core can create become something truly unique. The tie between retail and entertainment may be even more evident in Lawrence, where Kansas University provides a built-in market of both students and faculty who have helped build one of the most active retail corridors in the region, Massachusetts Street and several surrounding blocks. Lawrence also exhibits solid support, including support from the city that is occasionally controversial. The community has maintained fairly strict limits on growth outside the downtown area. Although detractors believe the result has limited the community, it no doubt has helped keep the area’s energy focused downtown at least to some degree. As a result, the Massachusetts Street corridor is often one of the most vibrant retail districts in the region. Although this area benefits from its obvious historic ties—several Nineteenth Century era storefronts give streets such as Massachusetts its regionally recognized appeal—new development has occurred. One is the River Market development, now flourishing as a multi-use commercial development with office suites, a restaurant featuring live music and a health clinic. Elsewhere, older buildings are being renovated as luxury office suites, upscale condominiums and retail developments. In some ways, nearby Topeka’s downtown retail challenge is the opposite. Instead of thousands of students looking for evening entertainment, thousands of state workers leave each night for home. An aggressive effort there has achieved considerable success. More than $10 million in public/private investment has helped grow both residential and commercial development. Significantly, many of the businesses are relatively small, with local investors who have remodeled older buildings for shops and restaurants. Many of these grassroots efforts are revitalizing buildings in downtown Topeka that were vacant for more than a decade. Future Challenge Not everything is automatically successful. Several areas that continue to address redevelopment include older downtowns and newer retail areas. In the downtown category, communities such as Harrisonville and Raytown are both working hard to create more contemporary, self-sustaining retail districts in these historic areas. Raytown’s downtown revival was moving forward in 2007 with the city’s reception of a $400,000 Community Development Block Grant by the Missouri Department of Economic Development. The CDBG is earmarked to help with demolition of the vacant First Baptist Church Building just off the city’s urban core. City officials already acquired the church property with intentions to convert a vacant structure into new development in a downtown square, which the city lacks despite its more than 100-year-old history. Raytown is also working to revive its Highway 350 corridor, a fairly stereotypical highway strip zone that offers several challenges. The most unusual downtown development in progress may involve Harrisonville in Cass County. There, a single owner hopes to rebuild the area into a combination shopping and entertainment district. Although the plans are generally meeting with approval, the development’s pace is not what some residents might want. Blue Springs’ downtown area is also challenging, with an older historic area just off a decades old highway corridor. Like Raytown’s 350 Highway area, the Blue Springs’ Highway 7 corridor presents challenges of both identity and focus. This city, however, implemented several strategies, including activities and events to offer more opportunity for local resident in the area. None of these downtowns, old malls or new developments faces an easy time. In areas such as southern Johnson County, competition is significant. In every area, the balance of increasing construction costs, competitive rents and other factors make the margin between success and failure slim. But if anything, the failures may prove the rule: overall, retail is a strong market here. Best of all, developers in many ways can draw on a larger toolbox as they face the perennial challenge of market competition.
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